Why Trump Media's sale of fast access to market-moving social posts is controversial
Trump Media & Technology Group (TMTG) has set up a paid service to give Wall Street firms access to Truth Social's most influential accounts.
Donald Trump's speeches have a significant impact on financial markets, prompting traders to monitor his statements closely. To capitalize on this, Trump Media & Technology Group (TMTG) has launched a paid service called Truth API. This service offers real-time access to influential posts from the platform's top accounts, including potential Trump posts.
However, the move has raised controversy and legal questions. Critics argue that TMTG, owned largely by the Trump family, stands to profit from the president's public statements, potentially creating an unfair advantage for high-frequency traders. Legal experts warn of the risk of insider trading, which is illegal. The Securities and Exchange Commission (SEC) has received a letter from Democratic senators asking if Truth API violates regulations but has not commented on an investigation.
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